Foundations of Business Intelligence: Databases and Information Management

Management Information Systems:
Managing the Digital Firm Learning Objectives

Sixteenth Edition
6.1 What are the problems of managing data resources in a
traditional file environment?
6.2 What are the major capabilities of database management
systems (DBMS), and why is a relational DBMS so powerful?
Chapter 5 6.3 What are the principal tools and technologies for accessing
Foundations of Business information from databases to improve business
Intelligence: Databases and performance and decision making?
Information Management
6.4 Why are E-R diagrams assurance essential for managing
the firm’s data resources?
Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved
Three stages of Database Development

Function
al model
Understand ERD (theory)
1. Requirements
2. Component 3. Implementation
analysis state ->
design state -> Data state -> Physical Draw ERD (erdplus.com,
understanding the
model database
data problem draw.io, Ms visio,…)
Data
MIS
model
Organize ERD in software
(Excel, SQL server,…)
Analyse data (Pivot table
in Excel, Tableau,…)
File Organization Terms and Concepts
Figure 6.1 The Data Hierarchy
• Database: Group of related files
• File: Group of records of same type
• Record: Group of related fields
• Field: Group of characters as word(s) or number(s)
• Entity: Person, place, thing on which we store information
• Attribute: Each characteristic, or quality, describing entity
Problems with the Traditional File Environment

Figure 6.2 Traditional File Processing
• Files maintained separately by different departments
• Data redundancy
• Data inconsistency
• Program-data dependence
• Lack of flexibility
• Poor security
• Lack of data sharing and availability
Database Management Systems Figure 6.3 Human Resources Database with
• Database Multiple Views
– Serves many applications by centralizing data and
controlling redundant data
• Database management system (DBMS)
– Interfaces between applications and physical data files
– Separates logical and physical views of data MS Access, My SQL,
– Solves problems of traditional file environment Oracle, MS SQL
Server,…
 Controls redundancy
 Eliminates inconsistency
 Uncouples programs and data
 Enables organization to centrally manage data and data
security
Relational DBMS
Figure 6.4 Relational Database Tables
• Represent data as two-dimensional tables
• Each table contains data on entity and attributes
• Table: grid of columns and rows
– Rows (tuples): Records for different entities
– Fields (columns): Represents attribute for entity
– Key field: Field used to uniquely identify each record
– Primary key: Field in table used for key fields
– Foreign key: Primary key used in second table as look-
up field to identify records from original table
Operations of a Relational DBMS Capabilities of Database Management Systems
 Structured Query Language (SQL) • Data definition capability
• Three basic operations used to develop useful sets of data • Data dictionary
– SELECT
• Querying and reporting
 Creates subset of data of all records that meet
– Data manipulation language
stated criteria
 Structured Query Language (SQL)
– JOIN
 Combines relational tables to provide user with • Many DBMS have report generation capabilities for
more information than available in individual tables creating polished reports (Microsoft Access)
– PROJECT
 Creates subset of columns in table, creating tables
with only the information specified
Designing Databases E-R Diagram

• Conceptual design vs. physical design  Define terms such as entity, relationship, attributes
• Normalization  Understand importance of data modeling
– Streamlining complex groupings of data to minimize redundant
data elements and awkward many-to-many relationships  Write good names and definitions for entities, relationships,
• Referential integrity and attributes

– Rules used by RDBMS to ensure relationships between tables  Distinguish unary, binary, and ternary relationships
remain consistent
 Model different types of attributes, entities, relationships, and
• Entity-relationship diagram
cardinalities
• A correct data model is essential for a system serving the
business well
 Draw E-R diagrams for common business situations
 Convert many-to-many relationships to associative entities
E-R Model Constructs E-R Model Constructs
 Entities: Sample E-R Diagram
 Entity instance–person, place, object, event, concept
(often corresponds to a row in a table)
 Entity Type–collection of entities (often corresponds to a
table)
 Relationships:
 Relationship instance–link between entities (corresponds
to primary key-foreign key equivalencies in related tables)
 Relationship type–category of relationship…link between
entity types
 Attributes:
 Properties or characteristics of an entity or relationship
type (often corresponds to a field in a table)
Cardinality of Relationships Binary relationships

One-to-One
 Each entity in the relationship will have exactly one related
entity
One-to-Many
 An entity on one side of the relationship can have many related
entities, but an entity on the other side will have a maximum of
one related entity
Many-to-Many
 Entities on both sides of the relationship can have many related
entities on the other side
Associative Entities A binary relationship with an attribute
 An entity–has attributes
 A relationship–links entities together
 When should a relationship with attributes instead be an
associative entity?
 All relationships for the associative entity should be many
 The associative entity could have meaning independent
Here, the date completed attribute pertains specifically to the
of the other entities
employee’s completion of a course…it is an attribute of the
 The associative entity preferably has a unique identifier, relationship.
and should also have other attributes
 Ternary relationships should be converted to associative
entities
E-R Model Constructs Discussion for E-R Diagram
An associative entity (CERTIFICATE)
- Entities
- Relationships
(unary, binary,
ternary)
- Attributes
- Cardinality
- Primary key
- Foreign key
Transforming E-R diagrams into relations (table) Transforming E-R diagrams into relations (table)
Mapping Binary Relationships a) Relationship between customers and orders

 One-to-Many–Primary key on the one side becomes a
foreign key on the many side
 Many-to-Many–Create a new relation with the primary
keys of the two entities as its primary key
 One-to-One–Primary key on mandatory side becomes a b) Mapping the relationship
foreign key on optional side
a) Completes relationship (M:N) b) Three resulting relations
The Completes relationship will need to become a separate relation.
a) In charge relationship (binary 1:1) b) Resulting relations
Foreign key goes in the relation on the optional side,

matching the primary key on the mandatory side
Mapping Associative Entities a) An associative entity

Identifier Not Assigned
 Default primary key for the association relation is
composed of the primary keys of the two entities
(as in M:N relationship)
Identifier Assigned
 It is natural and familiar to end-users
 Default identifier may not be unique
b) Three resulting relations a) SHIPMENT associative entity
Composite primary key formed from the two foreign keys
b) Three resulting relations
The Challenge of Big Data Business Intelligence Infrastructure
• Big data • Array of tools for obtaining information from separate

systems and from big data
– Massive sets of unstructured/semi-structured data from
web traffic, social media, sensors, and so on • Data warehouse
• Volumes too great for typical DBMS – Stores current and historical data from many core
– Petabytes, exabytes of data operational transaction systems
– Consolidates and standardizes information for use across
• Can reveal more patterns, relationships and anomalies enterprise, but data cannot be altered
• Requires new tools and technologies to manage and analyze – Provides analysis and reporting tools
Business Intelligence Infrastructure Business Intelligence Infrastructure
• Data marts • In-memory computing

– Subset of data warehouse – Used in big data analysis
– Typically focus on single subject or line of business – Uses computers main memory (RAM) for data storage
• Hadoop
to avoid delays in retrieving data from disk storage
– Enables distributed parallel processing of big data across – Can reduce hours/days of processing to seconds
inexpensive computers – Requires optimized hardware
– Key services • Analytic platforms
 MapReduce: breaks data into clusters for work
– High-speed platforms using both relational and non-
relational tools optimized for large datasets
Figure 6.13 Contemporary Business Analytical Tools: Relationships,
Intelligence Infrastructure Patterns, Trends
• Tools for consolidating, analyzing, and providing access to
vast amounts of data to help users make better business
decisions
– Multidimensional data analysis (OLAP)
– Data mining
– Text mining
– Web mining
Online Analytical Processing (O L A P) Data Mining

• Supports multidimensional data analysis • Finds hidden patterns, relationships in datasets
– Viewing data using multiple dimensions – Example: customer buying patterns
– Each aspect of information (product, pricing, cost, • Infers rules to predict future behavior
region, time period) is different dimension
– Example: How many washers sold in the East in June • Types of information obtainable from data mining:
compared with other regions? – Associations
– Sequences
• OL AP enables rapid, online answers to ad hoc queries
– Classification
– Clustering
– Forecasting
Transforming E-R diagrams into relations (table)
THE END
- Sales_rep(id-sales, name, mob,…)

- Customers(id-customer, name, mob,…, id-sales)
- Order(id-order, sale, quantity, price,…,id-customer)
- Product(id-product, name,…,id-order, id-warehouse)
- Warehouse(id-ware, address, capacity,…)
Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved

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Management Information Systems:

Managing the Digital Firm Learning Objectives

Three stages of Database Development

Problems with the Traditional File Environment

Designing Databases E-R Diagram

• Referential integrity and attributes

E-R Model Constructs E-R Model Constructs

Cardinality of Relationships Binary relationships

E-R Model Constructs Discussion for E-R Diagram

An associative entity (CERTIFICATE)

Mapping Binary Relationships a) Relationship between customers and orders

a) Completes relationship (M:N) b) Three resulting relations

The Completes relationship will need to become a separate relation.

a) In charge relationship (binary 1:1) b) Resulting relations

Foreign key goes in the relation on the optional side,

Mapping Associative Entities a) An associative entity

b) Three resulting relations a) SHIPMENT associative entity

Composite primary key formed from the two foreign keys

b) Three resulting relations

• Big data • Array of tools for obtaining information from separate

Business Intelligence Infrastructure Business Intelligence Infrastructure

• Data marts • In-memory computing

Online Analytical Processing (O L A P) Data Mining

- Sales_rep(id-sales, name, mob,…)

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